Simplifies LBO Model

Simplified LBO Model
Historical Financials in millions
Uses
Acquistion Price (EV)
250.0
EV/EBITDA multiple
30.1x
Total Uses
250.0
Revenue
% growth
EBITDA
of total %
Sources
Debt
210.8
84%
39.2
16%
Equity
Total Sources
% of Revenue
Less:
250.0
Interest Expense
250.0
Taxes
35.0%
Increase in NWC
Input
Lev. Mult.
25.4x
Interest
14.0%
Capex
Free Cash Flow Available for Debt
Capex of Rev %
Less: Debt Repayment
1.0%
NWC of Ref %
15.0%
Ending Debt Balance
Case Trigger
Active Case:Base Case
Estimated Valuation
Less: Debt
Plus: Cash Balance
Year 5 Assumptions
EBITDA
13.9
Exit Multiple
30.1x
Net Debt
323.6
Implied Equity Value
Output
Year 5 IRR Calc
Entry
12/31/2007
-39
Exit
12/31/2012
95.08
IRR
ROIC
19%
0.193780035
2.43x
2.426850647
Credit Statistics
Year1
Year2
Year3
Year4
Year5
Year6
20.8x
21.4x
22.0x
22.6x
23.3x
23.9x
EBITDA / Interest
0.4x
0.3x
0.3x
0.3x
0.3x
0.3x
% Paydown
(9%)
(19%)
(19%)
(29%)
(41%)
(54%)
Debt / EBITDA
als in millions
Projected Financials
Year1
12/31/2003
209.3
12/31/2004
12/31/2005
12/31/2006
12/31/2007
Year2
12/31/2008
12/31/2009
189.1
237.0
278.3
303.1
321.29
340.56
(10%)
25%
17%
9%
6%
6%
9.3
8.9
9.3
5.9
8.3
11.01
11.67
4%
5%
4%
2%
3%
3%
3%
-0.2
-30.81
6.93
-2.73
-3.21
-33.57
7.66
-2.89
-3.41
Opening
-18.81
18.81
-20.53
20.53
210.7
229.51
250.04
250.0
331.64
351.54
-210.7
-229.5
-250.0
0.0
0.0
0.0
39.3
102.13
101.50
*(EBITDA minus Interest) assumes no D&A for simplification

-0.2
-0.2
-0.2
-0.2
vailable for Debt
30.81495399
Year7
24.6x
0.3x
(67%)
Year3
Year4
12/31/2010
Year5
12/31/2011
Year6
12/31/2012
Year7
12/31/2013
12/31/2014
361.00
382.66
405.62
429.95
455.75
6%
6%
6%
6%
6%
12.37
13.11
13.90
14.73
15.62
3%
3%
3%
3%
3%
-36.57
8.47
-3.07
-3.61
-39.86
9.36
-3.25
-3.83
-43.44
10.34
-3.44
-4.06
-47.35
11.41
-3.65
-4.30
-51.61
12.60
-3.87
-4.56
-22.41
22.41
-24.46
24.46
-26.70
26.70
-29.15
29.15
-31.82
31.82
272.45
296.91
323.61
352.75
384.58
372.63
394.99
418.69
443.81
470.44
-272.5
-296.9
-323.6
-352.8
-384.6
0.0
0.0
0.0
0.0
0.0
100.18
98.08
95.08
91.06
85.86
Active Case
Revenue (Active Case)

Base Case
Downside Case
Annual growth Base Case
Annual growth Downside Case
% EBITDA Margin (Active Case)
Base Case
Downside Case
EBITDA/Sales
12/31/2007
12/31/2008
12/31/2009
12/31/2010
12/31/2011
303.10
303.10
303.10
321.29
321.29
312.19
340.56
340.56
321.56
361.00
361.00
331.21
382.66
382.66
341.14
3.43%
3.43%
0.43%
3.43%
3.43%
0.43%
3.43%
3.43%
0.43%
3.43%
3.43%
0.43%
3.43%
3.43%
0.43%
0.04
0.05
5.92%
0.04
-16.62%
0.02
-45.97%
0.03
29.17%
6%
3%
12/31/2012
12/31/2013
12/31/2014
405.62
405.62
351.38
429.95
429.95
361.92
455.75
455.75
372.77
3.43%
3.43%
0.43%
3.43%
3.43%
0.43%
3.43%
3.43%
0.43%

Simplifies LBO Model

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Simplifies LBO Model

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Simplified LBO Model

Historical Financials in millions

Less: Debt Repayment

Active Case:Base Case

Implied Equity Value

*(EBITDA minus Interest) assumes no D&A for simplification

vailable for Debt

Revenue (Active Case)

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